Market Focus

Hovnanian

Hovnanian shares tumbled today after it reported a loss that was bigger than expected. The home builder saw a drop in contracts on higher cancellation rates and fewer home deliveries. It blamed the poor quarterly performance on harsh winter weather, which slowed sales and extended construction times. The stock plunged more than ten percent to $5.44.

Brown-Forman

Brown-Forman posted better than expected earnings thanks to strong sales of Jack Daniels. The liquor maker behind other brands like Southern Comfort and Finlandia also upped it full-year earnings outlook. That sent shares up more than three percent to $87.11.

Safeway

Private equity firm Cerberus Capital Management is trying to wrap up a deal to buy Safeway, but supermarket giant Kroger might be getting in the way. There are reports that Kroger is considering a bid for Safeway, the nation’s second largest grocery chain, but Cerberus is still seen as the top buyout contender. That sent shares of Safeway up two percent to $39.48. Shares of Kroger also rose three percent to $43.68.

Eli Lilly

The FDA won’t approve Eli Lilly’s experimental diabetes drug because it is concerned about the facility where the drug will be made. In May, the FDA warned the drug maker that the German plant violated standards and those issues haven’t been resolved. The FDA isn’t requesting any more tests of the drug. Shares fell a fraction to $59.43.

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